Everton have Premier League points punishment changed after successful appeal

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A change has been made to a football club's punishment for breaching rules

Everton have today had their 10-point Premier League points deduction reduced to six points after a successful appeal against the punishment slapped on the Merseyside outfit in November.

The Toffees were punished for breaching the Premier League's Profitability and Sustainability Rules (PSR) with the sanction being handed down from an independent commission on November 17 last year. Everton appealed the decision with a hearing taking place earlier this month and the results of that process now unveiled.

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The change in points penalties means that the club now sits on 25 points, moving them up to 15th in the Premier League, five points above the bottom three. Sean Dyche's side last picked up a point on the road against Brighton last weekend and would be 13th in the table with no punishment.

Everton point deduction reduced to six points

An Everton statement read: "While the club is still digesting the Appeal Board's decision, we are satisfied our appeal has resulted in a reduction in the points sanction.

"We understand the Appeal Board considered the 10-point deduction originally imposed to be inappropriate when assessed against the available benchmarks of which the club made the Commission aware, including the position under the relevant EFL regulations, and the 9-point deduction that is imposed under the Premier League's own rules in the event of insolvency.

"The club is also particularly pleased with the Appeal Board's decision to overturn the original Commission's finding that the club failed to act in utmost good faith. That decision, along with reducing the points deduction, was an incredibly important point of principle for the Club on appeal. The Club, therefore, feels vindicated in pursuing its appeal.

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"Notwithstanding the Appeal Board's decision, and the positive outcome, the club remains fully committed to cooperating with the Premier League in respect of the ongoing proceedings brought for the accounting period ending in June 2023.

Everton have had their points punishment reduced after an appeal.Everton have had their points punishment reduced after an appeal.
Everton have had their points punishment reduced after an appeal.

"The club is still considering the wider implications of the decision and will make no further comment at this time other than to place on record its thanks to our Fan Advisory Board and other fan groups throughout this process, and to all Evertonians for their ongoing support and patience."

Why were Everton deducted 10 points?

Everton was handed a 10-point deduction on November 17 having been found guilty of breaching Premier League profit and sustainability rules, which were previously known as Financial Fair Play. The club had been referred to an independent commission last March after sharing their accounts for the 2021/22 season.

Those accounts showed that the club has recorded losses of £371.8 million over the past three years. The Premier League allows a maximum loss of £105 million.

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When the initial ruling was handed down, the club shared its frustration and labelled the 'harshness and severity of the sanction' as 'neither a fair nor a reasonable reflection of evidence submitted'.

Why has Everton had their financial punishment reduced?

Everton has not had the punishment for financial mismanagement waived but it has been reduced from 10 points to six points, which could be make-or-break when it comes to Premier League survival this season.

The club had argued that the overspending had been brought about by unforeseen and unprecedented circumstances which included -

  • The war in Ukraine led to financial ties with Alisher Usmanov's holding company USM being severed. Commercial deals with USM, including a potential naming rights deal worth £200 million, were also lost.
  • The Everton Stadium construction saw the club borrow money directly from owner Farhad Moshiri, which skewed the allowed limits.
  • The impact of the Covid-19 pandemic with the club spending a lot of money on players they found difficult to recuperate in sales during the period - but Everton did admit to overspending on underperforming players.

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